PUMP Investors Lose Confidence as On-Chain Data Points to Major Sell Pressure

As the project’s token continues to bleed value, on-chain analysts are uncovering large treasury movements that are raising doubts about whether the team is quietly cashing out.

A Collapse in User Demand Meets Major Treasury Movements

Activity on Pumpfun has been slowing for months. Monthly revenue, which hit an eye-watering $136 million in January, has now dropped to $38 million. With fewer users creating and trading tokens — the core engine of the platform — investors are watching the team’s financial decisions much more closely.

That has made the latest blockchain discoveries particularly explosive. Trackers observed 75 million USDC sent to Kraken in just eight hours, part of a much larger trail totaling roughly 480 million USDC transferred from wallets tied to ICO funds.

The transfers would normally be written off as operational if the token price were stable. Instead, they landed during one of the worst declines since launch — and that combination has triggered an uproar.

Why Kraken Became the Center of the Storm

The moment that shifted the conversation from “suspicious” to “concerning” was Kraken’s own transaction. Shortly after receiving the treasury funds, the exchange forwarded 69.26 million USDC to Circle, a pattern typically seen when liquidity is converted or redeemed.

That detail fueled speculation that the treasury was being liquidated rather than repositioned.

It didn’t help that earlier data from Lookonchain showed wallets tied to Pumpfun selling $757 million worth of SOL between May 2024 and August 2025 — activity that already had some traders on edge.

Public Response: Denial — and Doubt

Co-founder Sapijiju issued a direct rebuttal, saying the circulating narrative “misinterprets routine treasury management.” He argued that the company was simply moving ICO proceeds into wallets designed to fund long-term development.

However, with the project actively running a buyback program intended to support the token, the community is now questioning whether Pumpfun is really reducing sell pressure — or creating it.

A Trust Problem More Than a Blockchain Problem

Nothing in the blockchain record proves malicious intent. But the order of events — shrinking revenue, accelerating transfers, price decline, and the lack of proactive transparency — has created a perception issue that may be difficult to reverse.

Even if the funds were moved for completely legitimate runway management, the damage isn’t happening on the ledger — it’s happening in confidence.

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